Creditors Accept Arrangement Proceeding Plan for Netia Subsidiary.

Business Editors

Netia Holdings S.A. (NASDAQ:NTIAQ)(WSE:NET), Poland's largest alternative provider of fixed-line telecommunications services, today announced that the majority of creditors of Netia Telekom S.A., one of its subsidiaries, representing over 98% of total value of claims voted on June 24, 2002 in favor of the arrangement plan submitted to the court in Warsaw.

The arrangement plan for Netia Telekom S.A. is currently awaiting the required approval by the court, which is expected to be issued on June 25, 2002.

As previously announced, filings for the opening of arrangement proceedings and approval of the arrangement plans were also made by Netia Holdings S.A. and another of its subsidiaries, Netia South Sp. z o.o., all in connection with Netia's debt restructuring pursuant to the Restructuring Agreement signed on March 5, 2002. Voting by creditors is scheduled for Netia Holdings S.A. on June 28, 2002; the date for voting of creditors of Netia South has not yet been set.

Detailed conditions of the arrangement plan for Netia Telekom S.A.
accepted yesterday are as follows:

1. 91.3 % of the debts subject to the arrangement plan will be written
off;

2. Creditors will be repaid in annual installments;

3. Installment obligations will be denominated in Polish zloty, will
be zero coupon and shall be payable on the last day of each
consecutive calendar year during the period when the arrangement plan
is in force:

a) The first installment payable on December 31, 2007 shall be equal
to 8.5% of the reduced claims subject to the arrangement;

b) The second installment payable on December 31, 2008 shall be equal
to 8.5% of the reduced claims subject to the arrangement plan;

c) The third installment payable on December 31, 2009 shall be equal
to 17% of the reduced claims subject to the arrangement plan;

d) The fourth installment payable on December 31, 2010 shall be equal
to 17% of the reduced claims subject to the arrangement plan;

e) The fifth installment payable on December 31, 2011 shall be equal
to 24.5% of the reduced claims subject to the arrangement plan; and

f) The sixth installment payable on December 31, 2012 shall be equal
to 24.5% of the reduced claims subject to the arrangement plan.

4. Minor creditors' claims will be repaid in full commencing on the
date when the decision becomes non-appealable, and thereafter on the
due dates of respective claims. A minor claim shall be defined as any
claim of not more than PLN 3,000,000 inclusive, in compliance with an
approved list of receivables; and

5. The obligations under the arrangement plan will not be secured by
any form of security interest.

Some of the information contained in this news release contains forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. For a more detailed description of these risks and factors, please see the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F filed with the Commission on March 28, 2002, its Current Report on Form 6-K filed with the Commission on April 3, 2002, it Current Reports on Forms 6-K filed with the Commission on May 6, 2002, its Current Report on Form 6-K filed with the Commission on May 7, 2002, its Current Report on Form 6-K filed with the Commission on May 20, 2002, and its Current Report on Form 6-K filed with the Commission on May 24, 2002. The Company undertakes no obligation to publicly update or revise any forward-looking statements.